GSS cIRcle Open Scholar Award (UBCV Non-Thesis Graduate Work)

Seeing the trees for the carbon: agroforestry for development and carbon mitigation Anderson, Emily K.; Zerriffi, Hisham 2012

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Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication' is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 1' SEEING THE TREES FOR THE CARBON: 1' AGROFORESTRY FOR DEVELOPMENT AND CARBON 2' MITIGATION 3' Emily'Andersona'and'Hisham'Zerriffib'4' a(corresponding)(Institute(for(Resources,(Environment(and(Sustainability,(The(University(of(British(5' Columbia,(41122202(Main(Mall,(Vancouver,(BC,(Canada,(V6T(1Z4(6' emilyka@interchange.ubc.ca'7' bLiu(Institute(for(Global(Issues,(The(University(of(British(Columbia,(10126476(NW(Marine(Dr.,(8' Vancouver,(BC,(Canada,(V6T(1Z2(9' Abstract'10' LandFuse,'landFuse'change'and'forestry'(LULUCF)'activities'will'play'an'important'role'in'global'climate'change'mitigation.'11' Many'carbon'schemes'require'the'delivery'of'both'climate'and'rural'development'benefits'by'mitigation'activities'12' conducted'in'developing'countries.'Agroforestry'is'a'LULUCF'activity'that'is'gaining'attention'because'of'its'potential'to'13' deliver'climate'benefits'as'well'as'rural'development'benefits'to'smallholders.'There'is'hope'that'agroforestry'can'14' deliver'coFbenefits'for'climate'and'development;'however'experience'with'early'projects'suggests'coFbenefits'are'15' difficult'to'achieve'in'practice.'We'review'the'literature'on'agroforestry,'participatory'rural'development,'treeFbased'16' carbon'projects'and'coFbenefit'carbon'projects'to'look'at'how'recommended'project'characteristics'align'when'trying'to'17' generate'different'types'of'benefits.'We'conclude'that'there'is'considerable'tension'inherent'in'designing'coFbenefit'18' smallholder'agroforestry'projects.'We'suggest'that'designing'projects'to'seek'ancillary'benefits'rather'than'coFbenefits'19' may'help'to'reduce'this'tension.''20' Keywords:(co2benefits,(climate(change(mitigation,(rural(development,(agroforestry,(smallholders(21' 1. Introduction 22' LandFuse,'landFuse'change'and'forestry'(LULUCF)'are'important'contributors'to'global'climate'23' change.'The'Intergovernmental'Panel'on'Climate'Change'(IPCC)'estimates'that'landFuse'change'24' contributed'one'third'of'global'carbon'emissions'from'1850F1998'(Watson'et'al.'2000).'LULUCF,'25' particularly'deforestation'for'cropland,'remains'important:'seventeen'million'hectares'are'26' deforested'annually,'with'tropical'deforestation'contributing'25%'of'CO2'and'up'to'10%'of'N2O'27' emissions'globally'(Montagnini'and'Nair'2004;'Palm'et'al.'2004).'Despite'this'contribution'to'global'28' emissions,'interest'in'mitigation'through'LULUCF'mitigation'activities'(e.g.'carbon'credits'from'29' forestry)'was'initially'limited'due'to'issues'with'permanence,'leakage,'and'accounting'methods'30' (Hamilton'et'al.'2010;'Kossoy'and'Ambrosi'2010;'Milne'1999).''31' Today,'some'of'those'challenges'have'been'addressed,'more'opportunities'exist'and'the'use'of'32' LULUCF'activities'is'rising.'Traded'volumes'have'increased'steadily'since'2007'when'the'volume'of'33' forest'carbon'credits'traded'jumped'228%'over'the'previous'year'(Hamilton'et'al.'2010;'Kossoy'and'34' Ambrosi'2010).'Most'credits'are'generated'through'projects'involving'tree'planting'(77%'in'2008)'35' and'are'traded'on'the'voluntary'market'(95%'in'2008)'(Hamilton'et'al.'2010).'36' At'the'same'time,'understanding'is'growing'that'global'climate'change'mitigation'goals'should'be'37' pursued'concurrently'with'sustainable'development'(e.g.'Council'of'the'European'Union'2009;'38'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication' is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 2' UNFCCC'2009).'Thus,'many'mitigation'schemes'require'that'projects'contribute'to'sustainable'39' development'in'the'host'country.''40' Agroforestry'is'gaining'attention'for'use'in'LULUCF'mitigation'activities'in'developing'countries'41' because'of'its'potential'to'mitigate'climate'change'and'because'of'its'links'to'agriculture'and'42' forestry,'activities'central'to'the'livelihoods'of'many'of'the'world’s'poorest'people.'It'is'hoped'that'43' agroforestry'could'simultaneously'help'to'address'climate'and'development'goals'by'generating'44' “coFbenefits”'(Garrity'2004;'May'et'al.'2005;'Nair'et'al.'2009;'Pandey'2007;'Roshetko'et'al.'2007;'45' Schroeder'1994;'Watson'et'al.'2000).''46' 1.1 Agroforestry: Potential Rural Livelihood and Climate Change Mitigation Benefits 47' Agroforestry'is'a'landFuse'that'purposefully'combines'treeFgrowing'and'conventional'agricultural'48' practices'on'the'same'land'management'units'to'generate'social,'economic'and'environmental'49' benefits'and'services'(FAO'2010;'ICRAF'2010;'Nair'1993;'Nair'et'al.'2009).'Because'agroforestry'can'50' provide'livelihood'benefits'(both'monetary'and'nonFmonetary)'when'the'right'practices'are'used'51' (Table'1),'it'has'been'promoted'in'development'programs'to'benefit'poor'rural'households,'mainly'52' subsistence'farmers'on'small'landholdings'(Nair'et'al.'2009).'Most'development'agroforestry'53' literature'takes'an'implied'participatory'development'approach,'which'values'broad'engagement'of'54' farmers'in'the'development'process'and'methods'that'facilitate'participation'(Campbell'and'VainioF55' Mattila'2003;'Hayward'et'al.'2004;'Mohan'2007;'Williams'2004).'About'1.2'billion'people'in'56' developing'countries'rely'on'agroforestry'(Watson'et'al.'2000),'and'use'is'expected'to'increase'to'57' meet'the'resource'needs'of'rapidly'growing'populations'(Oelbermann'et'al.'2004).'58' Recently,'interest'in'also'using'agroforestry'for'climate'change'mitigation'has'grown'based'on'its'59' potential'to'deliver'benefits'from'carbon'sequestration'and'reduced'emissions'(Table'1).'The'IPCC'60' estimates'that'250'Mha'of'deforested'land'in'the'humid'tropics'could'be'converted'to'agroforestry'61' at'a'rate'of'3%'per'year,'with'an'average'potential'sequestration'rate'of'3.1't'C'haF1yrF1,'the'highest'62' of'any'LULUCF'activity'described'by'the'IPCC'apart'from'restoration'of'forestland'(Watson'et'al.'63' 2000).1'64' '''''''''''''''''''''''''''''''''''''''''''''''''''''' 1'Nair'et'al.'(2009)'suggest'that'estimates'of'sequestration'potential'for'agroforestry'should'be'used' with'caution.'This'figure'is'included'to'indicate'the'hopedFfor'contribution'of'agroforestry'to' mitigation'relative'to'other'activities,'a'motivation'for'increased'interest'in'its'use.''Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication' is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 3' Table'1:'Potential'benefits'of'agroforestry'adoption'for'development'and'climate'65' ! Benefits! Referencesa! Development! Tree'products'for'household'use'and'sale' • Fuel' • Food'' • Building'materials'and'other'wood'products' 4,7,8,13,20,24F 5' Income'&'employment' • Reduced'poverty' • Income'security' • Income'diversification' 3F5,10,12F3,19,' 20,22,24' Secondary'livelihood'benefits'' • Resilience' • Dignity' • Health'&'nutrition' 5,9,12,22F3' Local'environment'improvement' • Restoration'and'improvement'of'soil' • Reduced'soil'erosion' • Conservation'and'improvement'of'water'resources' • Increased'biodiversity'over'monocrop'systems' • Animal'habitat'and'wildlife'corridors' • Reduced'use'of'unsustainable'landFuse'practices' 1,'4F6,' 8,15,20,24F5' Livelihood'benefits'from'environment'improvement' • Increased'crop'production'and'food'security' • Improved'water'use'efficiency' • Support'of'biological'pest'control' 1,6,8,10,12,20, 22F5'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication' is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 4' ! Benefits! Referencesa! Climate! Carbon'sequestration'potential'greater'than'crop'or'pasture' systemsb' • Biomass'–'above'and'below'ground' • Soil' • Wood'products' 1,6,11,13,14,1 6F7,18F22,24F5' Lower'GHG'emissions'compared'to'cropping'systems' • N2O'emissions'similar'to'natural'forests' • CH4'sinks' 14,19,24F5' Avoided'emissions' • Substitution'of'fossil'fuels'and'fossil'fuelFintensive'materialsc' • Alternative'sources'of'tree'products''avoided' deforestation'and'forest'degradationd' • Alternative'to'higherFemission'landFuses' 1,2,5,6,13,15F 6,19,20,24F5' a1.Albrecht'and'Kandji'2003;'2.Appiah'et'al.'2009;'3.Bognetteau'et'al.'2007;'4.Current'and'Scherr'1995;'5.Current'et'al.'66' 1995;'6.Dixon'1995;'7.Dixon'et'al.'1994;'8.Fischer'and'Vasseur'2002;'9.Garrity'2004;'10.Jama'et'al.'2006;'11.Lal'67' 2004b;''12.Leakey'et'al.'2005;'13.Montagnini'and'Nair'2004;'14.Mutuo'et'al.'2005;'15.Nair'2007;'16.Nair'et'al.'2009;'68' 17.Niles'et'al.'2002;18.Oelbermann'et'al.'2004;'19.Palm'et'al.'2004;'20.Pandey'2007;'21.Roshetko'et'al.'2007;'69' 22.Sanchez'2000;'23.Sanchez'1999;'24.Schroeder'1994;'25.Watson'et'al.'2000'70' bAgroforestry'systems'can'regain'35%'of'the'carbon'stock'and'store'soil'carbon'at'a'rate'of'80F100%'that'of'forest,'71' compared'to'12%'and'50%'respectively'on'crop'or'pastureland'(Palm'et'al.'2004;'Watson'et'al.'2000).However,'systems'72' vary'considerably'and'sequestration'potential'depends'on'practices'used'(Albrecht'and'Kandji'2003;'Current'et'al.'1995;'73' Mutuo'et'al.'2005).'74' cThe'IPCC'estimates'that'substitution'of'renewable'biomass'for'fossil'fuels'could'avoid'about'3.5'Gt'carbon/yr,'more'75' than'half'of'current'fossil'fuel'emissions'(Watson'et'al.'2000).'76' dDifficulty'estimating'the'area'under'agroforestry'makes'it'hard'to'determine'the'exact'impact'of'agroforestry'adoption'77' on'deforestation'(Montagnini'and'Nair'2004;'Nair'et'al.'2009).'78' 1.2 Climate-Development Co-Benefits from Agroforestry? 79' Use'of'the'term'“coFbenefits”'usually'signals'that'two'or'more'outcomes'or'goals'are'desired'from'a'80' single'project,'often'with'a'goal'of'maximization'of'benefits.2'Many'believe'that'carbon'agroforestry'81' '''''''''''''''''''''''''''''''''''''''''''''''''''''' 2'In'the'carbon'literature,'the'term'“coFbenefits”'is'commonly'left'undefined,'or'used' interchangeably'with'“ancillary'benefits”'(e.g.'Aunan'et'al.'2004;'Pittel'and'Rübbelke'2008).'For'the' purposes'of'this'discussion,'a'“coFbenefit'project”'is'addressing'and'maximizing'benefits'for'dual' development'and'climate'priorities.'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication' is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 5' is'a'tool'with'significant'unrealized'potential,'particularly'for'delivering'benefits'from'carbon'82' schemes'to'smallholders'(Montagnini'and'Nair'2004;'Nair'et'al.'2009;'Oelbermann'et'al.'2004;'83' Roshetko'et'al.'2007).'Estimated'to'be'worth'$16.8'billion'over'10'years'to'tropical'and'developing'84' countries'(Niles'et'al.'2002),'the'potential'impact'of'carbon'finance'is'significant.'85' However,'seeking'coFbenefits'in'individual'projects'may'be'complicated'in'practice.'The'United'86' Nations'Food'and'Agriculture'Organization'has'warned'that'poor'land'users'will'not'automatically'87' benefit'from'carbon'payments'(Boyd'et'al.'2007).'Not'all'agroforestry'systems'will'deliver'all'or'any'88' of'the'benefits'described.'The'adoption'of'certain'systems'can'be'costly'from'a'development'or'89' carbon'perspective:'for'example,'some'systems'may'be'significant'sources'of'GHG'emissions'(Dixon'90' 1995),'and'some'can'have'negative'effects'on'crop'production'(Reynolds'et'al.'2007;'Siriri'et'al.'91' 2009).'Modeling'suggests'that'best'practices'for'realizing'carbon'benefits'may'not'always'be'best'for'92' realizing'livelihood'benefits'(van'Noordwijk'et'al.'2008),'and'potential'tradeFoffs'have'been'93' identified'in'forest'management'between'global'environmental'services'like'carbon'and'services'94' that'are'important'for'local'people'(Locatelli'et'al.'2011).'Several'authors'have'concluded'that'many'95' early'carbon'projects,'particularly'compliance'market'projects,'have'been'largely'unsuccessful'in'96' delivering'coFbenefits,'with'development'goals'being'met'only'in'a'limited'way'or'not'at'all'(Bailis'97' 2006;'Boyd'et'al.'2007;'Brown'and'Corbera'2003;'Cosbey'et'al.'2005;'Milne'and'Arroyo'2003;'98' Lövbrand'et'al.'2009;'Murdiyarso'et'al.'2008;'Nelson'and'de'Jong'2003;'Nishiki'2007;'Olsen'2007;'99' Sutter'and'Parreño'2007;'Wittman'and'Caron'2009).''100' The'purpose'of'this'paper'is'to'systematically'explore'the'implications'of'seeking'coFbenefits'in'101' carbon'agroforestry'programs.'In'reviewing'common'practices'and'project'design'recommendations'102' in'the'literature,'we'use'qualitative'coding'to'analyze'how'and'whether'agroforestry'projects'might'103' generate'coFbenefits'towards'addressing'the'dual'challenges'of'mitigating'climate'change'and'104' enhancing'livelihood'opportunities'in'developing'countries.''We'conclude'with'implications'for'105' effective'project'design'and'call'for'change'in'the'way'that'coFbenefits'are'approached'to'minimize'106' tensions'and'maximize'synergies.'107' 2. Methods  108' CoFbenefits'will'be'difficult'to'realize'in'practice'if'maximizing'desired'outcomes'for'development'109' and'carbon'requires'significantly'different'project'designs.'When'implementing'carbonF110' development'coFbenefit'projects,'practices'best'suited'for'realizing'and'maximizing'one'goal'may'or'111' may'not'be'the'same'as'or'compatible'with'best'practices'for'realizing'and'maximizing'the'other.'For'112' a'given'project'design'characteristic,'there'are'several'possibilities'when'comparing'recommended'113' or'widely'adopted'practices'for'realizing'each'desired'goal:'114' Likely!Tension'–'Best'practices'for'a'given'project'characteristic'conflict.'115' Possible!Tension'–'Best'practices'for'a'given'project'characteristic'may'be'in'conflict,'either'116' because'the'characteristic'is'specified'for'one'type'of'benefit'but'not'the'other,'or'because'117' significant'variation'of'this'characteristic'is'possible'depending'on'project'context.''118' Alignment'–'Best'practices'for'a'given'project'characteristic'to'realize'and'maximize'one'goal'are'119' not'expected'to'interfere'with'practices'to'realize'and'maximize'the'other.''120'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication' is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 6' Synergy'–'Best'practices'for'a'given'project'characteristic'compliment'those'for'the'other,'such'121' that'greater'benefits'may'be'realized'than'when'each'goal'is'sought'separately.'122' We'reviewed'academic'and'grey'literature'on'smallholder'agroforestry'for'rural'development,'treeF123' based'carbon'projects,'and'carbon'coFbenefit'projects'to'examine'how'well'best'practices'align'124' when'agroforestry'is'attempted'for'coFbenefits'for'carbon'and'development.'Using'qualitative'125' inductive'coding'methods'(Bernard'2006),'we'identified'recommended'and'common'practices'for'126' realizing'development'and'carbon'benefits'described'in'the'publications.'We'then'grouped'these'127' practices'according'by'project'characteristic.'The'project'characteristics'varied'widely'and'were'128' related'to'different'aspects'of'project'design'and'implementation.''To'help'understand'how'project'129' characteristics'related'to'each'other,'the'project'characteristics'were'clustered'into'three'broad'130' categories:'131' Enabling!Conditions! PreFexisting'political,'social,'economic'and'environmental'site'conditions'that'operate'at' various'scales'and'facilitate'the'realization'of'a'successful'project'(e.g.'the'availability'of' resources'such'as'land'and'information.' Substantive!Project!Characteristics! The'who,'what,'when,'where'and'how'of'the'project:'who'is'participating'and'how,'project' duration'and'size,'what'end'product(s)are'desired,'and'the'planned'methods'for'directly' achieving'them.'' Process!Project!Characteristics!! Elements'of'project'design'and'implementation'that'facilitate'project'success'but'do'not' directly'contribute'to'project'goals,'including'characteristics'that'shape'the'participation'of' local'people'and'how'the'project'interacts'with'factors'outside'the'project.'' Finally,'practices'for'realizing'development'versus'carbon'goals'were'compared'for'each'project' characteristic'within'each'cluster'and'then'classified'according'to'whether'they'could'be'expected'to' be'sources'of'Likely'Tension,'Possible'Tension,'Alignment,'or'Synergy'as'defined'above.''' 3. Results: Identifying Synergies and Tensions When Attempting Co-Benefits A'summary'of'results'is'presented'in'Table'2.'Carbon'finance'is'a'key'source'of'potential'synergy.'It' can'provide'opportunities'to'diversify'and'leverage'additional'funding'for'agroforestry'(Palm'et'al.' 2004;'Roshetko'et'al.'2007),'as'well'as'opportunities'to'overcome'barriers'to'agroforestry'uptake' (Harris'2007;'Palm'et'al.'2004).'Even'small'carbon'returns'could'provide'additional'income'and' added'incentives'for'the'adoption'of'treeFbased'systems'by'farmers'(Cacho'et'al.'2004),'and' important'early'revenue'for'project'developers'(Van'Vliet'et'al.'2003).'However,'it'may'be'difficult'to' take'advantage'of'these'opportunities'because'a'number'of'project'characteristics'are'likely'in' tension.'Section'3.1'discusses'possible'tension'and'synergy'relating'to'the'nature'and'timing'of' project'goals'and'outcomes'in'coFbenefit'projects.'Section'3.2'discusses'likely'tension'between' practices'that'facilitate'community'participation'versus'those'that'keep'project'costs'down.'A'more'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication' is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 7' detailed'discussion'of'expected'tension'and'synergy'for'all'project'characteristics'can'be'found'in' the'Electronic'Supplemental'Materials.Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication'is'available'at' www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 8' Table'2:'Predicted'tensions'and'synergies'in'project'characteristics'when'agroforestry'is'attempted'for'coFbenefits'for'climate'and'developmenta''  Project Characteristics Development Carbon Tensions and Synergies in Realizing Co-Benefits Enabling Conditions  Supportive government, policy and socioeconomic environments; emphasis on secure land and tree tenure and sufficient resources to support land-use change Supportive government, policy and socioeconomic environments; emphasis on secure land and tree tenure and sufficient resources to support land-use change Alignment Substantive Project Characteristics Participants and Partnerships: Social NGOs, Multi- stakeholder partnerships  Technical NGOs  Likely Tension: Contract length and flexibility; Project and farm size; Transaction costs; Provision of on-going education, training and technical support Possible Tension: Participants and partnerships; Project length; Timing of payments; Monitoring; Fund allocation; Agroforestry practices; End products Alignment: Monitoring; Agroforestry practices Synergy: Time to returns; Carbon finance; Agroforestry practices; End products Project Timeline: Longer term projects; Shorter term or flexible contracts; Short-term returns to farmers Longer-term projects; Longer, rigid contract terms to meet certification requirements; Short-term returns to investors and payment upon delivery of services Project Size: Small scale, small farm size Large scale, large farm size Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication'is'available'at' www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 9'  Project Characteristics Development Carbon Tensions and Synergies in Realizing Co-Benefits Substantive Project Characteristics (cont.)       Project Economics: Mainly donor funds; Farmers need access to upfront financial incentives or markets; High costs in smallholder projects; Involve community to lower monitoring costs Carbon finance available; High transaction costs associated with generating carbon credits; Expensive monitoring - involve community to lower costs  Agroforestry Practices: Mixed species, context-matched agroforestry practices  High carbon systems    End Product(s): Tangible products for household use or local and regional sale  Less tangible carbon credits for sale on primarily on international markets    Monitoring: Involve community to lower costs Extensive monitoring to ensure credit validity   Education, Training and Technical Support: Capacity-building emphasized  Minimized except where reduces transaction costs   'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication'is'available'at' www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 10'  Project Characteristics Development Carbon Tensions and Synergies in Realizing Co-Benefits Process Project Characteristics Preliminary Site Assessments: Important for site suitability and adaptation to local conditions Not emphasized Likely Tension: Flexibility of project design and implementation; Community participation; Facilitating market access Possible Tension: Preliminary site assessments; Interaction with project context and integrating with other activities; Demonstration of benefits Alignment: Community participation that reduces transaction costs Synergy: Integrating with other development activities to diversify funding  Interaction with Project Context/Integration with Other Activities: Extensive, active Less common Flexibility of Project Design & Implementation: Contracts non- existent or flexible, adaptive programming Standardized and rigid project designs and contracts Community Participation: Involvement in all stages recommended; Participatory, bottom- up decision-making. Minimized, except where can reduce transaction costs; Top-down decision- making.    Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The'original'publication'is'available'at' www.springerlink.com:'DOI:'10.1007/s10584F012F0456Fy ' 11'  Project Characteristics Development Carbon Tensions and Synergies in Realizing Co-Benefits Process Project Characteristics (cont.) Demonstration of Benefits Emphasized, through demo farms Not included Market Availability and Access Not needed where end products are for home consumption; Direct access to local markets by local farmers or farm organizations Access to global markets through intermediaries and brokers aSources:'Albrecht'and'Kandji'2003;'Appiah'et'al.'2009;'Ashley'and'Carney'1999;'Bognetteau'et'al.'2007;'Boyd'et'al.'2007;'Brown'et' al.'2000;'Bull'et'al.'2008;'Chivinge'2006;'Current'and'Scherr'1995;'Dixon'1995;'Dixon'et'al.'1994;'Dolan'2006;'Fischer'and'Vasseur' 2000,'2002;'Garrity'2004;'Harris'2007;'Jama'et'al.'2006;'Lal'2004a,'2004b;'Leakey'et'al.'2005;'Macqueen'2009;'Makundi'and' Okiting’ati'1995;'Milne'and'Arroyo'2003;'Montagnini'and'Nair'2004;'Mutuo'et'al.'2005;'Nair'et'al.'2009;'Nelson'and'de'Jong'2003;' Niles'et'al.'2002;'Noble'and'Dirzo'1997;'Oelbermann'et'al.'2004;'Palm'et'al.'2004;'Pandey'2007;'Roshetko'et'al.'2007;'Rudebjer'et'al.' 2006;'Sathaye'et'al.'2001;'Schroeder'1994;'SeebergFElverfeldt'et'al.'2009;'Shiferaw'et'al.'2009;'Watson'et'al.'2000Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The' original'publication'is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F 0456Fy ' 12' 3.1 Nature and Timing of Project Goals and Outcomes Development'projects'tend'to'have'a'more'social'focus'and'target'primarily'local' beneficiaries,'while'carbon'projects'tend'to'have'a'more'commercial'focus,'usually' targeting'international'markets.'Attempting'coFbenefits'means'that'an'agroforestry' project'has'two'goals'that'differ'significantly'in'terms'of'their'primary'orientation'and' scale'of'impact,'and'the'nature'and'timing'of'possible'end'products'(Table'3).'These' Substantive'Project'characteristics'could'be'important'sources'of'tension.' Table'3:'Nature'and'timing'of'products'from'development'and'carbon'agroforestry'projects'  Development Carbon Tree products Variable, tangible goods Variable time to returns Less tangible carbon credits Limited tangible goods Longer returns from tangible goods  Earlier returns from credits  Agricultural products Varied, early returns Limited, early returns ' End$Products$and$Agroforestry$Practices:$Desired'development'benefits'and'the' agroforestry'practices'to'generate'them'vary'based'on'local'conditions,'needs'and' desires'(Boyd'et'al.'2007;'Dixon'et'al.'1994;'Roshetko'et'al.'2007),'and'may'not'align' with'practices'that'improve'carbon'storage'and'reduce'emissions.'For'example,'high' quality'organic'inputs'maximize'crop'yields'while'lower'quality'inputs'reduce'emissions' (Mutuo'et'al.'2005).'' ' Contracts:'LongerFterm,'standardized'contracts,'used'in'carbon'projects'to'guarantee' carbon'benefits'and'reduce'costs'(Gong'et'al.'2010),'can'limit'what'products'can'be' generated,'delay'time'to'returns'from'nonFcarbon'products,'and'reduce'flexibility' (Anderson'and'Zerriffi'Unpublished'Working'Paper;'Roshetko'et'al.'2007).'This'has'been' a'source'of'tension'in'smallholder'planting'initiatives'in'China,'Ecuador'and'Uganda' (Anderson'and'Zerriffi'Unpublished'Working'Paper;'Gong'et'al.'2010;'Milne'and'Arroyo' 2003).' Time$to$returns:$Trees'take'longer'to'deliver'returns'compared'to'conventional' agricultural'crops.'Most'smallholders'do'not'have'sufficient'reserves'to'sustain'a'large' initial'reduction'in'returns,'even'if'their'longFterm'gain'would'be'greater'(Shiferaw'et'al.' 2009).'For'development'benefits'from'tree'planting,'farmers'need'access'to'short'term' returns,'financial'incentives'or'credit'(Fischer'and'Vasseur'2002;'Gong'et'al.'2010;'Torres' et'al.'2010).'In'carbon'markets,'payment'upon'delivery'of'credits'is'often'preferred' because'it'reduces'risk'to'project'developers'and'increases'assurance'of'permanence' (Harris'2007;'Kossoy'and'Ambrosi'2010).'If'farmers'are'substituting'trees'for'crops,' delaying'returns'to'farmers'could'cause'tension,'especially'if'this'acts'as'a'disincentive'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The' original'publication'is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F 0456Fy ' 13' to'participation'by'making'alternative'landFuses'that'can'provide'earlier'payments'more' attractive'(Gong'et'al.'2010).'' Synergistic'effects'from'carbon'income'will'only'be'possible'where'opportunities'exist' for'farmers'to'engage'in'practices'useful'for'their'needs'as'well'as'carbon'credit' generation,'such'as'good'soil'management'that'increases'both'soil'carbon'and'crop' yields'(Lal'2004a;'Roshetko'et'al.'2007).'For'those'already'using'or'considering' agroforestry,'carbon'credits'could'allow'farmers'to'realize'earlier'returns,'which'could' allow'some'to'participate'who'would'not'otherwise'have'sufficient'resources'to'wait'for' longer'returns'from'conventional'products'(Sathaye'et'al.'2001).' 3.2 Project Cost and Community Participation Much'of'the'expected'tension'highlighted'in'Table'2'relates'to'the'need'of'coFbenefit' projects'to'generate'carbon'credits'at'a'cost'low'enough'to'be'competitive'on'carbon' markets'while'sustaining'smallholder'participation'to'deliver'development'benefits.'On' their'own,'forestry,'smallholder'and'communityFbased'projects,'and'sustaining' participation'in'projects,'each'have'high'transaction'costs'(Boyd'et'al.'2007;'Cacho'and' Lipper'2007;'Harris'2007;'Haupt'and'von'Lüpke'2007;'Roshetko'et'al.'2007;'Smith'and' Scherr'2003).'Generating'carbon'credits'adds'additional'costs'associated'with'measuring' baselines,'proving'additionality,'and'monitoring'(Cacho'et'al.'2002;'Jindal'et'al.'2008;' Leach'and'Leach'2004;'Lile'et'al.'1998;'Milne'1999;'van'Noordwijk'et'al.'2008).'Not' surprisingly,'smallholder'carbon'projects,'particularly'those'delivering'substantial' sustained'benefits'to'local'people,'have'higher'transaction'costs'(Cacho'et'al.'2002;' Milne'1999;'Roshetko'et'al.'2007;'Smith'and'Scherr'2003).'Although'it'is'believed'to'be' possible,'keeping'costs'down'sufficiently'for'smallholder'carbon'forestry'coFbenefit' project'credits'to'be'competitive'with'those'generated'in'other'kinds'of'projects'is'very' difficult'(Cacho'et'al.'2005;'Nair'et'al.'2009).'The'tension'between'project'costs'and' project'participation'plays'out'in'both'the'Substantive'and'Process'Project' Characteristics.' 3.2.1 Substantive Project Characteristics Project'costs'are'at'the'root'of'tensions'for'a'number'of'Substantive'Project' Characteristics.'' Participants$and$partnerships:'For'development'benefits,'there'is'an'emphasis'on' building'good'relationships'and'communication'in'multiFstakeholder'partnerships' (Fischer'and'Vasseur'2002;'Garrity'2004;'Leakey'et'al.'2005).'Although'there'are' examples'of'carbon'projects'involving'multiple'partnerships'(e.g.'the'voluntary'market' Scolel(Te'project'described'in'Nelson'and'de'Jong'2003),'the'carbon'literature'did'not' emphasize'these'practices,'and'Boyd'et'al.'(2007)'suggest'that'multiFstakeholder' partnerships'may'be'avoided'in'CDM'carbon'projects'because'they'increase'project' costs.'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The' original'publication'is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F 0456Fy ' 14' Project$size:$Smaller'carbon'projects'usually'have'higher'transaction'costs'and'lower' profitability'per'hectare'(Cacho'et'al.'2004;'Cacho'and'Lipper'2007;'Harris'2007;'Leach' and'Leach'2004;'Skutsch'2004;'Smith'and'Scherr'2003;'Torres'et'al.'2010).'Transaction' costs'increased'exponentially'when'farm'size'dropped'below'one'hectare'(Cacho'and' Lipper'2007).'However,'smaller'projects'are'preferred'for'development'benefits,'in'part' because'they'are'more'easily'adapted'to'changing'needs'and'integrated'with'other' activities'(Boyd'et'al.'2007).'Smaller'farm'sizes'were'preferred'in'Uganda'where'most' farmers'had'less'than'a'hectare'for'treeFbased'landFuses'(Anderson'and'Zerriffi' Unpublished'Working'Paper).''' Monitoring:$Verification'of'carbon'credits'requires'expensive'monitoring'(Harris'2007;' Leach'and'Leach'2004;'Milne'1999).'Monitoring'is'more'expensive'with'smaller'or'more' heterogeneous'plots'of'land,'projects'involving'dispersed'landholders,'and'those' seeking'to'deliver'a'large,'diverse'range'of'benefits'(Cacho'et'al.'2004;'Milne'1999).'' Education$and$training:$OnFgoing'knowledge'transfer'that'is'participatory'and'regionally' appropriate'is'important'for'sustained'development'benefits'(Boyd'et'al.'2007;'Cacho'et' al.'2005;'Chivinge'2006;'Current'and'Scherr'1995;'Dolan'2006;'Fischer'and'Vasseur' 2002;'Roshetko'et'al.'2007;'Rudebjer'et'al.'2006;Shiferaw'et'al.'2009).'In'carbon'projects' education'and'technical'support'may'be'minimal'and/or'shortFterm'to'save'money.'In' projects'in'both'Mexico'and'Costa'Rica,'technical'support'was'discontinued'or'reduced' to'keep'projects'financially'viable'in'the'face'of'resource'shortages'(Milne'1999;'Nelson' and'de'Jong'2003).'' 3.2.2 Process Project Characteristics Many'of'the'practices'emphasized'for'sustaining'participation'to'realize'development' benefits'are'not'emphasized'for'carbon'benefits,'likely'because'of'additional'costs'that' practices'like'flexibility'and'collaboration'imply'(Boyd'et'al.'2007).'' Interaction$with$project$context$and$integration$with$other$activities:$For'coFbenefits,' projects'should'actively'facilitate'conditions'favourable'for'project'success'and'synergize' with'other'development'activities'(Nelson'and'de'Jong'2003;'Roshetko'et'al.'2007;' Sathaye'et'al.'2001).'Carbon'forestry'projects'are'not'always'linked'to'other'activities,' and'tend'to'focus'on'carbon'sales'rather'than'broader'community'development'goals' (Nelson'and'de'Jong'2003;'Nishiki'2007;'Olsen'2007).' Flexibility$in$Project$Design$and$Implementation:$Flexibility'facilitates'development' benefits'because'it'allows'people'and'projects'to'adapt'to'changing'conditions'and' needs'(Boyd'et'al.'2007;'Fischer'and'Vasseur'2000;'Roshetko'et'al.'2007;'Shiferaw'et'al.' 2009).'Carbon'projects'favour'more'rigid,'inflexible'designs'to'simplify'credit'validation' and'reduce'costs'and'fraud'(Boyd'et'al.'2007;'Harris'2007;'Smith'and'Scherr'2003;'Van' Vliet'et'al.'2003).' Community$Participation:$Project'“ownership”'by'local'participants'and'incorporation' of'local'knowledge'through'participatory'and'bottomFup'processes'are'recommended'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The' original'publication'is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F 0456Fy ' 15' by'many'authors'for'realizing'development'benefits'(Boyd'et'al.'2007;'Dolan'2006;' Roshetko'et'al.'2007;'Shiferaw'et'al.'2009).'By'contrast,'carbon'projects'often'use'topF down'decisionFmaking'and'limit'smallholder'involvement'to'reduce'costs'and'increase' control'by'intermediaries'tasked'with'ensuring'a'flow'of'valid,'economically'competitive' (Boyd'et'al.'2007;'Milne'1999).'' Demonstration$of$Benefits:'Many'farmers'are'motivated'to'participate'when'they'have' opportunities'to'experiment'and'see'results'before'they'commit'(Ashley'and'Carney' 1999;'Dixon'et'al.'1994;'Fischer'and'Vasseur'2000;'Roshetko'et'al.'2007).'Demonstrating' benefits'could'increase'project'costs,'and'is'not'and'is'not'generally'part'of'the'design'of' carbon'projects.' Market$Availability$and$Access:$To'sustain'participation'and'delivery'of'benefits,'people' must'have'access'to'markets'for'tree'products'destined'for'sale'(Roshetko'et'al.'2007;' Fischer'and'Vasseur2002).'While'direct'connections'between'producers'and'markets'are' feasible'for'some'physical'tree'products,'carbon'projects'often'use'centralized'brokers' to'connect'credit'producers'to'international'markets'(Nelson'and'de'Jong'2003;'Vatn' 2010).'Brokers'can'reduce'local'level'decisionFmaking'and'give'considerable'power'to' intermediaries,'which'is'less'desirable'for'development'benefits'(Boyd'et'al.'2007;' Macqueen'2009;'Leakey'et'al.'2005;'Nelson'and'de'Jong'2003;'Vatn'2010).'' 4. Discussion and Implications for Agroforestry Project Design While'it'may'be'possible'to'take'advantage'of'some'of'the'synergies'between' development'and'carbon'in'agroforestry,'many'of'the'tensions'described'may'be' difficult'to'resolve'because'the'underlying'approach'of'carbon'mitigation'and' development'projects'are'quite'different.'As'described'above,'the'literature'reviewed' reflects'the'fact'that'most'of'the'smallholder'development'agroforestry'efforts'explicitly' or'implicitly'take'a'participatory'approach'to'development.''This'approach'sees' successful'development'as'rooted'in'the'sustained,'broad'participation'and'onFgoing' support'of'local'people'(Hayward'et'al.'2004;'Williams'2004),'which'the'reviewed' literature'suggests'usually'means'projects'need'to'be'contextFspecific'and'communityF driven.'Although'smallholder'carbon'projects'must'also'sustain'participation,'they'must' concurrently'place'a'strong'emphasis'on'carbon'credit'validity'and'keeping'costs'down' in'order'to'produce'competitive'credits.'Our'review'suggests'that'many'of'the'practices' that'help'to'sustain'broad'participation'and'community'ownership'are'also'often'more' costly'and'can'make'validation'more'difficult.'This'aligns'with'conclusions'and'findings'in' the'literature'that'suggest'that'broad'participation'in'carbon'projects'can'be'difficult'to' achieve:'economic'benefits'from'carbon'are'likely'to'be'unevenly'distributed'(Tschakert' et'al.'2007)'and'flow'primarily'to'middleFincome'farmers'(Brown'and'Corbera'2003),' and'including'carbon'credit'generation'in'smallholder'tree'planting'projects'can' exacerbate'many'barriers'that'prevent'certain'community'members,'like'the'poor'and' women,'from'participating'(Anderson'2010).'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The' original'publication'is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F 0456Fy ' 16' To'effectively'deliver'development'and'carbon'benefits'in'the'same'project,'project' designers'will'need'to'think'carefully'about'how'to'overcome'these'inherent'tensions' when'different'kinds'of'benefits'with'different'requirements'for'success'are'sought' together.'There'are'some'possibilities'for'improving'participation'while'keeping'costs' down,'at'least'in'theory.''Some'practices'valued'for'sustaining'participation'and' delivering'development'benefits,'such'as'collaboration'and'increasing'trust'and' engagement,'may'also'have'the'potential'to'reduce'project'costs'overall'and'increase' project'success'(Boyd'et'al.'2007;'Gong'et'al.'2010;'Milne'1999;'Vatn'2010).'For'example,' working'with'established'organizations'could'reduce'costs'associated'with'negotiation' and'training,'and'may'increase'the'quality'of'development'benefits'generated'(Cacho'et' al.'2005;'Milne'1999;'Nelson'and'de'Jong'2003).'Smallholder'participation'in'project' design'and'linking'to'other'development'and'research'activities'could'diversify'funding' opportunities,'reduce'costs'and'leakage,'and'increase'monitoring'effectiveness'(Boyd'et' al.'2007;'Milne'1999;'Nelson'and'de'Jong'2003;'Roshetko'et'al.'2007;'Smith'and'Scherr' 2003).'Other'strategies'to'lower'costs'include'focusing'on'the'voluntary'carbon'market,' generating'revenue'from'conventional'tree'products,'grouping'smallholders'or'projects' to'increase'size,'increasing'carbon'prices,'and'diversifying'carbon'credit'types'(Boyd'et' al.'2007;'Cacho'and'Lipper'2007;'Cacho'et'al.'2005;'Gong'et'al.'2010;'GriegFGran'et'al.' 2005;'Harris'2007;'Milne'1999;'Niles'et'al.'2002;'Palm'et'al.'2004;'Smith'and'Scherr' 2003;'Torres'et'al.'2010;'Van'Vliet'et'al.'2003).'' However,'meeting'smallholder'needs'and'reducing'project'costs'may'be'difficult'in' practice'(Smith'and'Scherr'2003),'especially'where'costFreducing'strategies'require' action'outside'of'project'control.'This'is'reflected'in'the'limited'success'of'early'projects' to'deliver'coFbenefits.''Many'of'the'recommendations'made'in'the'reviewed'literature' to'improve'coFbenefit'projects'reflect'recommendations'for'achieving'development' benefits'from'a'participatory'development'perspective,'without'thoroughly'addressing' the'implications'of'adopting'these'practices'for'project'costs'and'tensions'with'practices' in'many'successful'carbon'forestry'projects.'For'example,'Roshetko'et'al.'(2007)'make'a' number'of'suggestions'about'how'successful'smallholder'carbon'projects'should'be' designed,'such'as'collaborating'closely'with'smallholders'in'project'design'and' implementation.'Although'transaction'costs'are'identified'as'a'key'barrier'in'smallholder' carbon'projects'and'some'suggestions'are'made'for'lowering'overall'costs'and'securing' additional'funds,'the'impact'that'their'specific'suggestions'for'securing'development' benefits'will'likely'have'on'project'costs'is'not'acknowledged'or'analysed.'Similarly,' Boyd'et'al.'(2007)'acknowledge'that'participatory'process'may'be'costly'without' concrete'suggestions'to'address'this'issue.'Given'that'it'is'challenging'to'keep'costs' sufficiently'low'in'smallholder'carbon'projects'generally'(Cacho'et'al.'2005;'Nair'et'al.' 2009),'the'impact'of'increased'costs'due'to'participatory'practices'could'be'significant.' An'alternative'approach'to'trying'to'maximize'coFbenefits'in'a'way'that'increases' participation'while'reducing'costs'is'to'redefine'the'goals'of'agroforestry'projects'in' terms'of'primary'and'ancillary'benefits.''This'approach'is'discussed'in'the'next'subF section,'followed'by'some'ideas'around'next'steps'for'research'in'this'area.'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The' original'publication'is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F 0456Fy ' 17' 4.1 Ancillary Benefit Projects For'smallholder'agroforestry'projects'to'be'successful,'whether'for'carbon'mitigation'or' development'or'both'goals,'requires'realistic'expectations.'Meeting'expectations'is' important'to'maintaining'the'trust'necessary'to'maintain'good'relationships'between' project'stakeholders'and'achieve'success'(Fischer'and'Vasseur'2002).'The'sustainability' of'smallholder'agroforestry'projects'and'their'ability'to'attract'and'sustain'funding'and' the'participation'of'smallholders'will'likely'be'compromised'if'projects'fail'to'meet' expectations'or'fall'short'of'their'own'goals,'as'it'appears'a'number'of'coFbenefit' projects'have'(e.g.'Brown'and'Corbera'2003;'Nelson'and'de'Jong'2003;'Anderson'and' Zerriffi'Unpublished'Working'Paper).'Discussing'carbon'forestry'projects'initiated'under' REDD3,'Corbera'and'Brown'(2008)'suggest'that'“an'overemphasis'on'coFbenefits”'can' lead'to'a'decrease'in'project'investment,'and'suggest'simplifying'where'possible.'' An'alternative'to'a'coFbenefits'approach'that'would'make'expectations'clearer'and' more'realistic'while'also'simplifying'project'design'is'an'ancillary'benefits'approach.'''In' this'approach'both'goals'are'sought'intentionally'but'not'necessarily'coFmaximized.'' Instead,'the'project'is'explicitly'designed'to'achieve'one'goal'(carbon'mitigation'or' development)'as'its'primary'outcome'while'finding'opportunities'to'maximize'the' spillover'or'ancillary'benefits'to'the'other.''For'example,'an'agroforestry'project'may'be' designed'with'a'primary'goal'of'delivering'livelihood'improvements'to'local'people,'but' include'carbon'credit'generation'to'bring'additional'income'and'earlier'returns'to' farmers.'In'this'case,'the'project'would'likely'have'to'be'sustainable'on'its'own'(i.e.'not' rely'on'carbon'credits'for'success).$4''The'carbon'credits'produced'might'not'be' maximized'if'certain'choices'are'made'that'are'considered'important'from'a' development'perspective'(e.g.'more'flexibility'in'use'of'tree'products),'but'could'still' provide'some'additional'monetary'benefits.'By'contrast,'a'large'carbon'forestry'project' prioritizing'carbon'credit'generation'could'use'money'from'carbon'finance'to'fund' community'development'activities'to'promote'community'support'and'reduce'leakage.'' In'each'case,'the'project'is'designed'first'for'success'in'the'area'of'primary'interest;'any' conflict'between'best'practices'for'each'type'of'benefit'is'resolved'in'favour'of'the' primary'goal.'But,'where'practices'are'not'in'conflict,'the'project'is'designed'to'take'into' '''''''''''''''''''''''''''''''''''''''''''''''''''''' 3'Reduced'Emissions'from'Deforestation'and'Forest'Degradation,'an'approach'to' reducing'global'emissions'linked'to'forest'sources.'REDD'(now'generally'referred'to'as' REDD+)'includes'projectFbased'approaches,'which'could'potentially'include'smallholder' agroforestry.'' 4Similarly,'Roshetko'et'al.'(2007)'suggest'that'coFbenefit'projects'should'be'socially'and' economically'viable'without'carbon'revenue,'which'could'be'viewed'as'a'strong'version' of'the'ancillary'benefits'argument.'However,'this'would'also'reduce'the'potential'for' synergy'from'additional'carbon'revenue.'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The' original'publication'is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F 0456Fy ' 18' consideration'and'then'capitalize'on'opportunities'for'alignment'or'synergy'to'deliver' ancillary'benefits'for'the'secondary'goal.'This'was'the'approach'taken'by'a'commercial' carbon'project'in'Uganda,'Global'Woods,'which'focuses'primarily'on'carbon'credit' generation.'(Anderson'2010).'Due'to'costs'and'tenure'complications,'local'farmers'do' not'currently'participate'directly'in'carbon'credit'generation;'however,'the'employment' opportunities'and'development'programs'provided'by'the'company'make'revenues'and' benefits'available'to'the'community,'including'those'who'would'be'unable'to' participate'in'carbon'tree'planting'on'their'own'land'(e.g.'the'landless)'(Anderson'2010).' Although'more'research'would'be'needed'to'explore'in'detail'the'distribution'of' different'costs'and'benefits'in'this'approach,'an'independent,'communityFreviewed' report'suggests'that'local'people'are'benefiting,'and'are'supportive'of'the'approach' (Heifer'International'2010).'' These'different'approaches'each'would'have'their'own'set'of'tradeoffs'and'factors' necessary'for'success.''There'are'good'reasons'for'the'emphasis'on'participatory' development'in'the'literature,'and'for'the'wide'acceptance'of'links'between'community' participation'and'the'success'of'development'efforts'more'generally'(Pieterse'1998).' These'include'connections'between'participatory'processes'and'initial'and'sustained' participation'of'smallholders'(Roshetko'et'al.'2007;'Shiferaw'et'al.'2009),'and'the'more' equitable'of'distribution'of'benefits'that'would'be'expected'from'participatory' development’s'emphasis'on'broad'participation'(Hayward'et'al.'2004;'Williams'2004).'' Alternative'approaches'that'emphasize'carbon'credit'generation'first'and'development' as'an'ancillary'benefit'would'have'to'take'into'account'and'be'explicit'about'the'kinds'of' development'benefits'being'delivered'and'to'whom.' An'ancillary'approach'could'be'an'intermediate'step'that'allows'project'implementers' to'simplify'tradeFoffs'and'project'design,'set'more'realistic'expectations,'and'secure' resources,'potentially'getting'projects'off'the'ground'more'quickly'while'progress'is' made'to'improve'the'coFbenefit'approach.'An'ancillary'approach'may'also'be'preferable' in'some'cases:'for'example,'since'maximization'does'not'take'into'consideration'factors' like'thresholds,'an'ancillary'approach'could'help'project'implementers'to'avoid'tradeF offs'they'don’t'actually'want'to'make.'For'example,'maximizing'overall'benefits'could' result'in'an'imbalance'in'climate'versus'development'benefits,'fail'to'address'specific' climate'or'development'priorities,'or'fail'to'deliver'adequate'benefit'to'reach'a'critical' threshold'that'project'designers'might'want'to'reach,'such'as'a'level'of'income' considered'the'threshold'for'raising'households'out'of'poverty.'Wherever'an'ancillary' approach'is'taken,'it'will'be'important'to'have'some'level'of'integration'and' coordination'to'ensure'that'different'projects'do'not'work'at'crossFpurposes.'' 4.2 Next Steps Whether'carbon'finance'can'deliver'the'synergy'and'coFbenefits'hoped'for'in'the' literature'will'depend'on'interactions'between'global'and'local'factors.'More'research'is' needed'if'agroforestry'is'to'effectively'deliver'benefits'for'rural'development'and'global'Revised'manuscript,'published'in'2012'in'Climatic(Change,(115(324):7422757.'The' original'publication'is'available'at'www.springerlink.com:'DOI:'10.1007/s10584F012F 0456Fy ' 19' climate'in'a'manner'that'is'equitable,'effective,'and'acceptable'to'all'stakeholders.' Further'research'will'be'useful'to'determine'how'best'to'resolve'inherent'tensions'in'coF benefit'projects,'and'to'what'extent'and'in'what'circumstances'an'ancillary'approach'to' project'design'may'be'useful.'Where'a'participatory'approach'to'development'is' combined'with'carbon'credit'generation,'it'will'be'especially'important'to'consider'how' initiatives'to'improve'development'outcomes'will'affect'project'costs.'Considering'the' variability'in'agroforestry'technologies,'carbon'markets,'and'project'contexts'in' particular,'more'detailed'case'studies'to'explore'the'nuances'of'how'specific'project' characteristics'and'practices'are'linked'to'the'delivery'of'development'and'climate' outcomes'will'be'important.'In'the'meantime,'a'focus'on'an'ancillary'benefit'approach' to'project'design'could'make'larger,'timelier'contributions'to'addressing'climate'change' mitigation'and'human'development'priorities,'while'providing'valuable'opportunities'to' improve'the'design'of'smallholder'agroforestry'projects'operating'with'multiple'goals,' many'beneficiaries,'and'across'scales.'' 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